DAOL Investment & Securities noted on the 9th that the withdrawal of PharmaResearch's spin-off is expected to increase stock prices due to the resolution of governance uncertainty. It is anticipated that the relatively weak foreign investment will recover and corporate value will rise.
PharmaResearch stated on its website on the 8th, "While we resonate with the intent of the partitioning and appreciate the expectations for our global leap, there were various opinions regarding concerns about governance changes, potential damage to shareholder value, and the sufficiency of communication. We have taken this into careful consideration and have decided to re-evaluate this decision."
Earlier, PharmaResearch had resolved to plan a spin-off during a board meeting on the 13th of last month. They intended to split into the surviving corporation 'PharmaResearch Holdings,' which will handle investments, and a newly established corporation 'PharmaResearch' that will take over the existing aesthetic business. However, there was controversy over whether the division ratio of the holding company and the new corporation, set at 74.28% and 25.72%, respectively, was intended to strengthen the dominance of the major shareholders.
With PharmaResearch withdrawing the spin-off, governance uncertainty has been somewhat alleviated, and it is expected that improvements in their previously sluggish European expansion and growth rate will accelerate.
Park Jong-hyun, a researcher at DAOL Investment & Securities, stated, "Shipments are expected by the end of this year, with a significant European export beginning next year," adding, "We anticipate growth acceleration through the expansion of new approvals for Rejuran and new products."
He further added, "It is expected to contribute somewhat to stock price increases due to anticipation of index inclusion from the rise in corporate value, and considering domestic medical tourism demand and global expansion strategies, we set the target stock price at 710,000 won."